DDT, NEW DELHI vs. M/S. COBRA INSTALACIONES Y SERVICIOUS SA, NEW DELHI

We have heard Ld. Sr. DR and perused the relevant material on record. We find that in the return for the assessment year 2005-06, the total income declared by the assessee u/s 115JB of the Income-tax Act, 1961 (for short the Act’) is Rs.79,94,642/- and the income assessed under Section 115JB of the Act by the Assessing Officer for assessment year under consideration is Rs.85,38,399/-. Therefore, the tax effect on the addition is less than Rs.10 lacs. Similarly, in assessment year 2006-07 also, the income is assessed u/s. 115JB of the Act and the tax effect on disputed amount is less than Rs.10.00 lakhs.

It is noticed that the CBDT has issued Circular No. 21 of 2015 dated 10.12.2015 with retrospective effect, revising the monetary limit to Rs.10,00,000/- for not filing appeals before the Tribunal. Learned Sr. DR could not controvert the fact that tax effect involved in the appeals is less than Rs.10,00,000/-. 3. From para 10 of the above Circular, it is palpable that the Instruction is applicable to the pending appeals also with retrospective effect and there is a clear-cut direction to the Department to withdraw or not press such appeals filed before the ITAT, wherein tax effect is less than Rs.10,00,000/-. Going by the prescription of the afore-noted Circular, we are of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect in these appeals is admittedly less than the prescribed limit i.e. Rs. 10,00,000/- for not filing the appeal. Accordingly, we dismiss the instant appeals without going into merits of the case. However, the Department is at liberty to file the Miscellaneous Application, if the tax effect is found to be more than the prescribed limited of Rs. 10 lacs or otherwise. Accordingly, the appeals of the Revenue stand dismissed. 6. In the result, both the appeals of the Revenue are dismissed. The decision is pronounced in the open court.